Whitehall's spending watchdog says planned cuts by police forces fall £500 million short of the savings needed.
The National Audit Office says the Home Office has improved financial management over the last three years and is delivering value for money in terms of exercising financial control over its core business activities.
''Its plans for making savings in those activities appear to be sound''
''However there is more work to do. It needs to examine its activities as a whole when looking for additional savings and there are clear risks to the successful delivery of its programmes to develop and phase out agencies''
"The department should ensure that the key financial skills it is demonstrating at the centre are similarly demonstrated within these programmes."
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